Tuesday, June 25, 2024

Brazilian media groups negotiate opening companies with foreign ‘bets’ – Games Magazine Brasil

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To operate in Brazil, international online betting companies must have a local partner with at least a 20% stake. But it is not just because of this limitation that they are looking for local companies.

For international companies, a partner with knowledge of the Brazilian market is interested – this is the usual strategy when large companies explore new markets,” says José Francisco Manssur, former special advisor to the Ministry of Finance and one of those responsible for the online betting regulation project in Brazil. “On the national side, it is important to be with a partner with well-established experience and compliance (being in accordance with rules).

According to another source, the advantage for Brazilian communication companies is mainly the diversification of sources of income, which have been decreasing for decades, and advancement in a booming area. In November, the Finance opened accreditation for companies interested in operating in this market.

The grant, valid for three years, costs R$30 million (US$ 6m). The government expected to receive 30 applications, but finally got 130. Among them, large media groups, such as Grupo Band, Grupo Globo and SBT.

Globo was accredited through DFS, Cartola FC

According to a source familiar with the world of betting, Globo has already been approached to work in partnership with two companies, one North American and the other European. However, the group also gained accreditation at the Treasury through DFS Entretenimento, owner of Cartola Futebol Clube.

Categorized as a fantasy game – in which players choose teams and win gifts –, Cartola was launched in 2005 and registered the mark of more than 5 million teams selected in a round of the Brasileirão, in 2017.

Actually, Globo doesn’t need a partner,” says the source. “It dominates the Brazilian media market, has the expertise of Cartola and has the luxury of choosing who it wants to partner with.

The Bets Law, sanctioned in 2023 as part of Finance Minister Fernando Haddad’s revenue increase package, prohibits operators in the sector or their controlling or controlled companies from holding, licensing or financing broadcasting rights for sporting events, such as football games. soccer.

First list of accredited companies will be published in July

According to the schedule outlined by the Finance, the first list of accredited companies will be published in July. In the meantime, the rules are being defined. Among them is the one that prevents gamblers from using credit cards.

“It doesn’t make sense to offer Desenrola (debt renegotiation program) on the one hand and allow bets with credit cards,” says Manssur. For him, the payment system, both for the bet and the prize, will have to be accredited by the Central Bank, “as a way to prevent the system from being used for money laundering.”

Until July, the Finance will also publish regulations governing the disclosure of bets. “They cannot be misleading, saying, for example, that the bettor will become a millionaire,” says Manssur.

According to him, Finance and the Ministry of Health work together to define standards for preventing “pathological gambling disorder” and “preventing bettor debt”, as stated in the calendar of actions published by the Finance. “One and a half percent of the Brazilian population has a compulsion to gamble. There are a lot of people and this is being taken into account,” he says.

Through a note, Globo confirmed that DFS is evaluating the business opportunities. “Based on the new regulations, the company is studying the potential of the sports betting segment in Brazil as well as a possible evolution of the Fantasy segment.” Band and SBT did not respond to interview requests.

The most advanced agreement is that of Grupo Bandeirantes de Comunicação, in partnership with OpenBet, according to a source familiar with the matter.

The company processes half of sports bets in the United States and Canada, in addition to 65% of those in the United Kingdom. The company belongs to the North American group Endeavor, which is publicly traded on the New York Stock Exchange and had revenues of almost US$ 6 billion last year.

Source: Estadão 

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